Ukrzaliznytsia Faces 11 Billion UAH Losses Due to War

The freight business of Ukrzaliznytsia can no longer finance unprofitable passenger transportation, as it itself suffers significant losses due to the consequences of the war. The current tariff covers only 5% of the cost of suburban transportation, while local budgets compensate about 40% of the cost of subsidized travel. As a result, 90% of the expenses for electric trains are not covered by either ticket sales or compensation from communities. Previously, the shortfall was covered by revenues from freight transportation; however, in 2026, the freight segment ended the period with an operational loss of 11 billion UAH. The main reasons for the losses are related to the evacuation from Pokrovsk, which cost 7-7.3 billion UAH, and the increase in electricity prices by 2.4 times, adding 15.4 billion UAH in expenses. Representatives of the European Business Association emphasize that freight transportation should not finance the social functions of the state and call for transparent financing through the PSO mechanism, which is expected no earlier than 2028. In the first half of 2026, freight transportation decreased by 6%, with a total of 74.7 million tons of cargo transported.

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